A Random Collection of Short Investor Relations Tales. Steve Campbell Newfield Exploration Company September 2017

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1 A Random Collection of Short Investor Relations Tales Steve Campbell Newfield Exploration Company September 2017

2 Newfield Exploration THEN ~100 Employees $200 million in revenue Offshore focused (GOM) Natural Gas $1.0 billion of EV 115,000 BOEPD 8 research analysts NOW 1,000 Employees $1.5 billion in revenue Onshore focused Oil $10 billion of EV 160,000 BOEPD 38 research analysts We ve Come A Long Way!

3 A Random Collection of Short IR Tales 1. If the grass looks greener, check for weeds 2. Transition? Call me when it s over 3. Make sure you re at the table 4. Don t let the schedule consume you 5. Avoid time out 6. When they knock on the door, be ready 7. Parting take-aways

4 If the Grass Looks Greener, Check for Weeds Who you work for, and with, greatly matters Opportunity to build a Comm / IR Team Grow your talent as the organization grows Add value throughout the organization IR/Comm is a service function! Compensation is determined by your impact on results If you re challenged, you ll grow

5 Transition? Call Me When It s Over Transitions are tough and take time Shareholder turn-over Increased volatility

6 $ / sh The Journey Peaks and Valleys 160 Natural Gas Focused Oil Focused Financial crisis Oil price drops Transition Resource upside NFX Shareholder Price WTI Oil Price

7 Make Sure You Have a Seat at the Table IR should report to the CEO Establish a dialogue with the BOD Influence decision-making

8 IR / Communications Structured for Success Chairman, President and CEO Vice President Investor Relations Investor Relations Coordinator Manager Investor Relations Manager Corporate Communications Manager Government Affairs Corporate Responsibility Analyst Control the message

9 Don t Let the Schedule Consume You MENU ~30 ENERGY conferences ~38 Analysts Bus tours Non-deal roadshows Social media Phone calls Office meetings Trade associations PRIORITIES Identify top shareholders, analysts and PM s Direct communication often Establish news flow and information sequencing Attend only key events Rotate through remainder Create quality interactions between management and owners IR MANAGES THE CLOCK

10 Average Number of Investor Events by North American Companies

11 Avoid Time Out Guidance Process Create a process for guidance, get buy-in Carefully consider: Level of detail Duration of guidance Medium to disseminate Frequency Build, assess, refine guidance process Involve all relevant parties Create ownership Instill within corporate goals 11

12 If They Knock, Be Ready to Answer Activism is on the rise Value investors on steroids Engaged owners push for change Mainstream investors now working with activists Know your corporate vulnerabilities Be prepared to (instantly) address Have a plan on the shelf Build a team IR / communications Investment bank Outside PR counsel Management / Board 12

13 Activists Have Changed Their Tactics In 2007, the most common way an activist investor first engaged with a company was through a phone call. In 2017, it was through the purchase of shares. 13

14 Understanding Your Vulnerabilities Commentary Risk Level Share Price Relative market performance 1, 3, 5-year lookbacks Operating Results Execution, performance against guidance Relative performance against peers Balance Sheet Strategic Capital structure Liquidity profile Credit rating Is the organization executing is strategy? Is the strategy aligned with investor expectations? Governance Board member tenure Governance issues

15 Parting Thoughts Your integrity matters You can leave a job your reputation follows Serve those around you Be a resource for your management and shareholders Know your owners and why they own you Establish a dialogue with your BOD